How to Deal With Credit Card Debt Collection Agency Phone Calls

Credit card debt collection agencies may start a pattern of calling you frequently regarding unpaid debts. While collection agencies can call debtors, they cannot threaten, harassment or abuse debtors. Several tactics can help you deal with annoying calls, and in some cases, stop calls and communication with a credit card debt collection agency completely.

Instructions

1

Tell them to stop calling your job. Credit card debt collection agencies may acquire your work number and call you on the job. Stop communication attempts at your place of employment by simply demanding (in writing or over the phone) that the agency stop phoning your job. According to the Federal Trade Commission, an agency must comply with this request.

2

Send a letter to stop phone calls to your home. With your letter requesting that an agency stop calling your work, include a notation informing the collector to stop calling your house as well.

3

Give the agency a reminder. Collectors are not authorized to call before 8 a.m. and 9 p.m. If you receive calls before or after these hours, remind the collector of this rule. Inform them of your plan to file a complaint if they continue to call before or after these hours.

4

Ask for confirmation and tell the collection agency to stop calling or writing until they send written proof that you owe the amount. Put this request in writing and keep a copy of the letter.

5

Report harassment by a debt collection agency. File a complaint with the Federal Trade Commission and your state's Attorney General if a credit card debt collection agency violates the law.

Read More

How to Lower a FICO Score

Finding fun ways to lower a FICO score, a measure of credit risk, isn't hard. Of course, this isn't a plan you want to follow if you want a peaceful life free of worry. If a phone ringing off the wall with debt collectors, garnished wages or repossessions doesn't sound like fun then don't follow these steps.

Instructions

1

Do not check on your credit report by visiting free sites like Annual Credit Report so that you see where your credit reports stand and what issues with your credit might be listed on it. If you see incorrect information on your report, do not ask that it is corrected instead, leave it as is.

2

Don't pay your bills on time. Let the mailbox fill up with late notices. You'll get to them when and if you feel like it or have some extra money. Naturally, neither of those things is very likely to happen. Paying bills on time or even making double payments if possible is a sure to raise your score, it does not lower it.

3

If you've missed payments, don't bother to call or write and let the creditor know why. Should you have a plan to pay soon, or if you can at least send part of the debt to them, don't bother to communicate with them.
If you communicated with them, they might even waive certain penalties or late payments if you've been current so far, and that kind of responsibility in debt paying is not how to lower a FICO score.

4

Don't worry that if the debt gets sent to a collections agency even paying it off won't get it off your credit rating. Do not be the least concerned that this debt will not be there for all to see for the next seven years and will not come off until then.

5

Whatever you do not go to the National Foundation for Credit Counseling site at nfcc.org, where you might find ways to get in touch with a legitimate credit counselor who could help you get back on track.

If you went to a credit counselor or checked with a website like Incharge.org, you would have to bring along copies of all those late notices along with all the original agreements you signed with the creditors. You would need to start keeping track of correspondence and even phone calls made to debt collectors.
They would want you to get in touch with the companies you owe and ask for copies of any invoices or contracts you are missing.
They would want you to look at all your old receipts and bills and calculate how much you typically spend a month on groceries, your mortgage or rent, utilities and clothing. Once you have the basic needs for the month calculated, you can then work on ways to meet your other obligations.
This is a lot of work, and it will do nothing to lower your FICO score, in fact, it might raise it high enough to make getting new loans or even a low interest loan on a house or car feasible.

6

If you haven't reached the point of having to deal with outstanding debts or debt collectors the best way to accomplish this and lower your FICO score is by:
Getting multiple credit cards and lines of credit and charging up items to the limit. Make sure that you can't pay back the funds in a timely manner and keep opening new accounts. Doing so, will ensure that you will lower your FICO score.

Read More

How to Become a Credit Expert

Becoming a credit expert has lots of daily uses. It allows you to better manage your finances, help friends and relatives with credit problems, or organize self-help groups for your church or place of worship. Or you could parlay your expertise of credit into a full-time job as a nonprofit credit counselor or a loan officer at a bank or credit union. Becoming a credit expert is possible through self-study and professional training.

Instructions

1

Read or view as much accurate information as possible about credit from reputable sources, such as the websites for major credit bureaus Experian, Equifax and TransUnion. The credit bureau websites offer practical, unbiased advice about credit and issues affecting credit scores. Some of the sites offer free video training about credit.

2

Study legal issues caused by credit problems, such as judgments and bankruptcy, by reading content posted on nonprofit legal assistance websites such as the Atlanta Legal Aid Society or the New York Legal Assistance Group.

3

Participate in seminars and community outreach programs offered by nonprofit credit counseling agencies in your community. Find government-approved credit counselors in your area by visiting the website for the U.S. Department of Housing and Urban Development.

4

Network with loan officers and bankers to learn more about challenges people face with credit. Contact your bank or credit union to inquire about more community outreach programs. Attend the events to learn more about credit.

5

Show that your are becoming an expert in credit by personally maintaining a high credit score. Credit scores range from 350 to 850, with scores of 720 or higher generally considered outstanding. Set a personal goal of reaching a 750 or higher credit score to further establish yourself as credit-savvy.

Read More

Does Paying Off Installment Accounts Help Your Credit?

Your credit report shows all of your present and past debts and indicates how they were paid. It also provides potential lenders a credit score that is determined from all of your credit history. The formula used is proprietary. However, if you pay all of your obligations when they are due, pay more than the minimum on credit cards and do not have any major derogatory items such as a bankruptcy or charge-off, your credit score should be excellent.

Installment Accounts

An installment account is one that has a fixed payment each month for a fixed number of months. They include vehicle payments, student loans and appliance purchases. Credit reporting agencies expect you to pay each payment when it is due. Before your first few payments, your score will temporarily drop because you do not have any payment history for the account. You should pay the payments when due. Accelerating a payoff on installment accounts will not increase your credit score.

Revolving Accounts

Credit agencies look at revolving accounts in a different way. The agencies want you to pay more than the minimum payment each month. Agencies also want you to keep your balances below 30 percent of your available credit at all times. If you owe 100 percent of your maximum credit limit, it will have a major effect on your credit score. The closer you get to 30 percent or less, the better your score will be.

Miscellaneous Items

Negative items such as a bankruptcy, foreclosure, judgment and collection accounts naturally have a negative effect on your credit score. The older the effective date is, the less effect it has on your score. A paid negative item is better than an unpaid one, but having no negative items will result in a considerably better score. A 30- or 60-day late payment would have a major impact on your score if the date was within the past year, but it would have little impact if the reported date was five years ago.

Considerations

Pay your installment debts when they are due. Pay a minimum of twice the minimum payment on credit cards and try to maintain balances at or below 30 percent of your credit limit. Do not let a debt become a collection account. If you disagree with a $20 charge and refuse to pay it, it will cost you considerably more than that in increased interest rates because of a collection account showing up on your credit report. It may lower your score enough to prevent you from getting the credit you need.

Read More

Agencies to Help a Homeowner Avoid Foreclosure

Government and nonprofit agencies can help homeowners avoid foreclosure. The Federal Trade Commission says you should avoid for-profit agencies that market themselves as "foreclosure rescue" experts. The FTC says the agencies often make promises that they cannot keep, while others simply scam consumers by taking upfront payments and never bothering to even contact the lender.

HUD

The U.S. Department of Housing and Urban Development (HUD) maintains a list of HUD-approved housing counselors located throughout the United States and Puerto Rico. The counselors can answer your questions, review your situation, suggest options, help you with your budget and prepare you for foreclosure prevention discussions with your lender. Services from HUD-approved counselors are usually free. Visit the HUD website (see Resources) to find a HUD-approved counselor in your area.

Housing Authorities

Most states have housing authorities that offer a variety of services, including help with foreclosure avoidance. Examples include the Michigan State Housing Development Authority, the Tennessee Housing Development Agency and the Ohio Housing Finance Agency. Some counties and cities have housing authorities as well. Find a housing authority in your state by contacting the customer service department for your lender. Another option is to contact a charitable organization such as the United Way or Urban League. Tell the representative that you are looking for a housing representative who can help with foreclosure prevention.

Homeownership Preservation Foundation

The Homeownership Preservation Foundation is a nonprofit organization supported by banks, mortgage companies, local governments and other organizations. It exsits to help people avoid foreclosure by qualifying for loan modification and other programs. Loan modification allows lenders to rework the terms of your loan to make the payments more affordable. Contact the foundation by calling 888-995-4673 or visit its "Hope Now" website (see Resources).

Read More

How to Stop Foreclosure in California on a Mortgaged and Refinanced Home

If you have refinanced your California home to reduce your monthly mortgage costs and you still cannot afford your mortgage payments, you may be at risk of foreclosure. This is a process in which a lender exercises its right to sell your home as collateral under a defaulted loan. Unlike in many other states, a lender in California does not have to involve the courts in foreclosure proceedings, so it can complete the foreclosure quickly -- typically within four months of issuing a notice of default. If your lender is contemplating foreclosure, several strategies can help you stop this action in California.

Instructions

1

Pay the lender the entire past-due amount, plus any late fees and other related costs, within 90 days after your lender issues a notice of default. Paying all past-due amounts and costs cures the default, which stops foreclosure proceedings in California.

2

Contact your lender to ask about repayment arrangements. Your lender may accept repayment of past-due amounts over a period of several months, or may grant a forbearance of payments to allow you time to overcome a short-term financial obstacle. Have your pay stubs, monthly bills and documentation of other expenses ready when you call -- your lender will need income and expense information to determine if you are eligible for a repayment plan or forbearance.

3

Ask your lender about a mortgage modification under the Making Home Affordable Program. A mortgage modification can reduce your payments by extending your loan terms, reducing your interest rate and absorbing past-due amounts into the balance of your mortgage loan. Your lender will typically suspend foreclosure proceedings pending approval of a mortgage modification.

4

Contact your lender to inquire about a deed in lieu of foreclosure. This strategy involves surrendering the title to your home instead of simply allowing the lender to complete the foreclosure. In some cases, the lender may be willing to lease the property back to you, allowing you to remain in the home; however, not all lenders will accept a deed in lieu of foreclosure or assume the risk of leasing the property back to you.

5

Call a California bankruptcy attorney to determine if bankruptcy is the right strategy for you. A bankruptcy filing will stop foreclosure proceedings in California. Whether you get to keep your home depends on the type of bankruptcy you choose -- in a Chapter 13 bankruptcy, you agree to make affordable payments to your creditors, which may allow you to remain in your home; in a Chapter 7 bankruptcy, all of your nonexempt assets, which include your home, are liquidated to pay your creditors.

Read More

How to Negotiate With Creditors Before Bankruptcy

While seemingly an easy fix, the long-term effects of bankruptcy can be more than a consumer is ready to bear. Depending on the type of bankruptcy filed, your credit report carries that blemish for seven to 10 years. It can affect your ability to buy a house, purchase a car and even get a job. While your situation may have progressed to the point where you see no other way out, negotiating with your creditors may be an option; creditors may acquiesce to recover at least a portion of your debt.

Instructions

1

Compile a list of your creditors, starting with the highest balances. List the name, what you owe and the applicable interest rate.

2

Create a monthly budget. Begin with debts that you will not or cannot negotiate, such as your mortgage or car payment. Allot a reasonable amount of money to living expenses and emergencies. Evaluate what is left to determine your negotiating position with your creditors.

3

Call each individual creditor. Start with the lower balances, as they will be the easiest to pay off if your negotiations are successful. Ask to speak to a manager or someone who has decision-making authority. The customer service representative who initially answers will not be able to negotiate terms.

4

Speak to the manager. Explain your situation clearly and succinctly. Don't embellish to try to generate sympathy. Tell him why you became delinquent, detail your efforts to remain current and indicate that your situation is heading toward bankruptcy.

5

Offer a realistic settlement figure. Suggest a payment below the figure you can realistically make. If the creditor agrees, you will have some breathing room. If the creditor counters with a higher number, you can raise your offer to continue negotiation.

6

Request an interest-rate reduction if the creditor balks at a lesser amount. A reduced interest rate can lower your monthly payment.

7

Request the new repayment terms in writing once agreed upon.

8

Make your new payment as agreed each month. Failing to make the negotiated payments can leave you with no other option than bankruptcy.

Read More